Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and the same quarter last year. Operating cash flow improved significantly, leading to higher free cash flow and an improved margin.
- With revenue unchanged, operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin. The conversion from revenue to cash improved notably.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin were all higher, with capital expenditure slightly lower. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin were also higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$560.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$213.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$251.8M
Cash generated by operations before capital spending.
CapEx
$38.7M
Capital spending and related asset purchases.
FCF margin
21.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-12-30 | $1.0B | $220.9M | $78.3M | $142.6M | 14.1% |
| 2024-03-30 | $1.0B | $129.9M | $79.1M | $50.7M | 5.0% |
| 2024-06-29 | $1.0B | $193.5M | $39.5M | $154.0M | 15.0% |
| 2024-09-28 | $1.0B | $251.8M | $38.7M | $213.1M | 21.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 305.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while revenue remained stable and capital expenditure was lower. This was the strongest observable driver of the increase in free cash flow.
The higher operating cash flow, combined with lower capital expenditure, improved free cash flow and margin relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, operating cash flow rose while capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin. The conversion from revenue to cash improved notably.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin were all higher, with capital expenditure slightly lower. Versus the same quarter one year earlier, operating cash flow, free cash flow, and margin were also higher, while capital expenditure was lower.
Monitor whether operating cash flow can sustain this higher level given stable revenue.